So just as an example to make it make sense, if I sent out a Glimmora (whose only ability is Toxic Debris) and it got hit by Psyshock, (a special move that does physical damage) would it set up a Toxic Spikes like Toxic debris normally does when hit by a physical move?
Psyshock is not a physical move, so it does NOT activate Toxic Debris. It only uses the target's defense instead of special defense for calculation. However, for everything else it works like a special move. For Toxic Debris to activate, the attack must be physical, and regardless of whether it makes contact or not.
When a Pokémon with this Ability is hit by a physical move, Toxic Spikes are set on the opposing side of the field.
Source
Psyshock inflicts damage. Psyshock uses the target's Defense instead of its Special Defense to calculate damage. Otherwise, it is considered a special move.
No Psyshock does not activate Poison Debris, as Glimmora's ability only activates if the opponent uses a Physical move upon Glimmora and since Psyshock is Special it won't activate
Source: https://pokemondb.net/move/psyshock